As Steve was driving to work, his car was involved in an accident caused by a speeding driver that ran a stop sign and crashed into her car. Steve has collision insurance on his car with a $500 deductible. The repair costs total $6500 for Steve's car.

1. If Steve files a claim with the insurer, can he also collect payments from the negligent driver's insurer? Explain your answer.

2. Explain the principles of subrogation and indemnity as they apply to Steve.